Knowles Corp
NYSE:KN
Knowles Corp
In the dynamic world of acoustics and specialized electronic components, Knowles Corporation stands as a pivotal player, leveraging innovation to carve its niche. Established with a focus on precision engineering and quality, the company excels in producing micro-acoustic microphones, speakers, and hearing aid components, which serve as integral parts of consumer electronics and hearing health industries. At the heart of its operations lies a robust manufacturing and design capability, spreading across multiple continents, ensuring a global footprint that meets diverse market demands. Knowles harnesses cutting-edge technology to deliver superior sound quality, fulfilling the consumer's ever-increasing expectations for smaller and more efficient devices.
The company's revenue model is intricately linked to its key segments: Audio and Precision Devices. In the Audio division, Knowles provides micro-acoustic solutions that are utilized in various devices, including smartphones, tablets, and hearing aids. Such applications require high-performance acoustic solutions, creating substantial demand for Knowles' products. On the other hand, the Precision Devices division caters to industries needing sophisticated capacitors and radio frequency components, vital for telecommunications and defense applications. By continually adapting to technological advancements and consumer trends, Knowles ensures a steady stream of income, aligning its innovation with the needs of the rapidly evolving electronics landscape.
In the dynamic world of acoustics and specialized electronic components, Knowles Corporation stands as a pivotal player, leveraging innovation to carve its niche. Established with a focus on precision engineering and quality, the company excels in producing micro-acoustic microphones, speakers, and hearing aid components, which serve as integral parts of consumer electronics and hearing health industries. At the heart of its operations lies a robust manufacturing and design capability, spreading across multiple continents, ensuring a global footprint that meets diverse market demands. Knowles harnesses cutting-edge technology to deliver superior sound quality, fulfilling the consumer's ever-increasing expectations for smaller and more efficient devices.
The company's revenue model is intricately linked to its key segments: Audio and Precision Devices. In the Audio division, Knowles provides micro-acoustic solutions that are utilized in various devices, including smartphones, tablets, and hearing aids. Such applications require high-performance acoustic solutions, creating substantial demand for Knowles' products. On the other hand, the Precision Devices division caters to industries needing sophisticated capacitors and radio frequency components, vital for telecommunications and defense applications. By continually adapting to technological advancements and consumer trends, Knowles ensures a steady stream of income, aligning its innovation with the needs of the rapidly evolving electronics landscape.
Strong Q3 Results: Knowles reported Q3 revenue of $153 million (up 7% YoY) and EPS of $0.33 (up 22% YoY), both at the high end of guidance.
Segment Performance: Precision Devices led growth with 12% YoY revenue increase, while Medtech & Specialty Audio grew 2% YoY.
Specialty Film Expansion: Specialty film business expected to grow significantly in 2025, with capacity expansion underway to support an energy order and a growing backlog.
Raised Growth Outlook: Management now expects total company organic growth at the high end of the 4% to 6% range for 2025, citing strong design wins and a healthy backlog.
Healthy Balance Sheet: Robust cash generation enabled $20 million in share buybacks and $15 million in debt reduction; net leverage ratio is 0.6x.
Q4 Guidance: Q4 revenue expected between $151 million and $161 million (up 9% YoY at midpoint) with EPS guidance of $0.33 to $0.37.
Bookings & Backlog: Bookings remain strong, especially in defense and distribution, with normalized channel inventories and a high backlog.
